Banking, Money and Taxes in Denmark

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Banking, money and taxes in Denmark
Expats will find that managing banking, money and taxes in Denmark is an easy and convenient process.

However, although the country's highly developed financial infrastructure is a definite plus, expats will need to budget their money carefully as Denmark has one of the highest tax rates in the world, not to mention a notoriously high cost of living
 

Money in Denmark


Denmark is part of the European Union, but it has not converted its currency to the Euro. The official currency of Denmark is the Danish Krone or Crown, abbreviated as DKK. The krone is divided into 100 øre. 
 
Notes: 50, 100, 200, 500 and 1,000 DKK
Coins: 50 øre and 1, 2, 5, 10 and 20 DKK
 

Banking in Denmark

 
Banking in Denmark is sophisticated and efficient. Most banks offer online banking, which makes paying bills and making transfers easy and convenient. The main banks in Denmark are Danske Bank, Nykredit and Nordea.
 

Opening a bank account 

All an expat needs to do to open a bank account in Denmark is apply for a Civil Registration Number (CPR) and head to the bank to open their account. Expats will need to open a NemKonto (Easy Account) for everyday payments, which is compulsory for all residents in Denmark. Without this account, expats will not receive their salary or any payments from Danish authorities (tax refunds etc.).
 

ATMs and credit cards

ATMs can be found outside all banks in Denmark, as well as most supermarkets and shopping centres. Expats can use their credit cards to withdraw cash from ATMs.
 
Expats can use credit cards throughout the country, but most small payments are made in cash. The Danish also have a card payment system called Dankort, but expats must have a Danish bank account to use this system. It is useful to have Dankort because it is accepted across the country and some small businesses may not accept international credit cards. 
 

Taxes in Denmark

 
Expats who are tax residents of Denmark will be taxed on their worldwide income. Expats qualify for tax residency simply by being resident in Denmark. Those who are not Danish residents but who live in Denmark for six consecutive months also qualify for Danish tax residency. 
 
The tax system in Denmark is automatic, which means that tax will be deducted from an expat’s salary before they are paid. Expats should register with the Central Tax Administration (SKAT) before they receive their first paycheck. Expats will receive a tax card that is sent directly to their employer, which will ensure that they are taxed correctly.

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